Extensive Notes On All Chapters

Resource Description

CHAPTER 1: ROLE OF BUSINESS

1.1) THE NATURE OF A BUSINESS

PRODUCING GOODS AND SERVICES
Business: The organised effort of individuals to produce and sell, for a profit, the products (goods and services) that satisfy individuals’ needs and wants.

Importance of Business to an Economy
○ SME (Small-Medium Enterprise) provide employment to approximately 50% of the workforce
○ Help to increase the national income and living standards
○ Greater choice for customers

Businesses Distribute Wealth to:
○ Governments – in form of tax
○ Employees – for salaries and wages
○ Business owners and Shareholders – in dividends
○ The business itself – through depreciation
Goods: Items that can be seen or touched. They are physical items that can be touched.
Services: Things that are done for you by others in exchange for money